Even with the economy faring well, a majority of American voters are less confident about their retirement prospects than they were five years ago, a survey by the Certified Financial Planner Board of Standards (CFP Board) and Heart + Mind Strategies found.
More than 60% say it is harder to retire on time now than it was in 2013. Fifty-eight percent say it will be harder to retire on time in 2023. Sixty-two percent are confident they will be able to maintain their savings as they transition into retirement, but only 45% think their savings will last throughout their retirement.
“By 2060, there will be more than 98 million Americans who are 65 or older,” says CFP Board CEO Kevin Keller. “People are also living longer than ever before. In many cases, retired Americans will need to support themselves for 10, 15, 20 or even 30 years, meaning people need to save earlier, save more and be better prepared for the financial challenges of retirement.”
The survey found that 66% have less than $100,000 in household financial assets outside of their primary residence. Nonetheless, 33% say they have become more proactive about setting and following a financial plan, and 60% say they are likely to work with an adviser to determine a retirement plan.
However, 23% are waiting three to five years before retirement to start working with an adviser. Among the group looking to work with an adviser, 82% want them to take their entire financial situation into consideration, and 79% say the adviser should work in their best interest all of the time.
“As Americans start planning for retirement, they want to work with financial professionals who are competent in financial planning and who are required to work in their best interest to ensure they are set up for a secure, comfortable future,” Keller says. “CFP certification is the best-in-class standard for financial planning and requires all financial planners to always act as a fiduciary.”
The CFP Board and Heart + Mind Strategies conducted the survey of 1,000 voters on election night.